Genie Energy Announces Second Quarter 2024 Results

- NYSE Companies
  0

Newark, NJ, Aug. 06, 2024 (GLOBE NEWSWIRE) — Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the second quarter of 2024. 

Michael Stein, chief executive officer of Genie Energy, commented: 

“Our solid second quarter results reflect the investments in meter and RCE growth we made in the first half of last year, combined with a stable, normalized retail energy environment. We also delivered a solid performance at Genie Renewables, where Diversegy and our operational solar farms helped drive 7% revenue growth and over 700 basis points of gross margin expansion.

“Our strong performance over the first half of 2024 puts us on track to achieve our full year guidance of $40 to $50 million in consolidated Adjusted EBITDA. In the second quarter, we also improved our ability to fund growth and capital return initiatives by increasing our net cash, cash equivalents and marketable securities by nearly $16 million, even while in investing in our business, paying out our quarterly dividend and repurchasing $2.6 million of our common stock.” 

Second Quarter 2024 Highlights
(Unless otherwise noted, 2Q24 results are compared to 2Q23, and results of Genie Retail Energy International (GREI) are included in discontinued operations for all periods.) 

  ● Revenue decreased 3.0% to $90.7 million from $93.5 million;
     
  ● Gross profit decreased 12.8% to $33.3 million from $38.2 million. Gross margin decreased to 36.8% from the stronger-than-usual 40.9% attained last year;
     
  ● Income from operations decreased to $10.6 million from $15.0 million;
     
  ● Adjusted EBITDA1 decreased to $12.0 million from $15.8 million;
     
  ● Net income attributable to Genie common stockholders and income per diluted share EPS attributable to Genie common stockholders of $9.6 million and $0.36 compared to $15.0 million and $0.57, respectively;
     
  ● Non-GAAP net income1 and non-GAAP EPS1 attributable to Genie common stockholders of $10.1 million and $0.37 compared to $15.0 million and $0.57, respectively;
     
  ● Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased to $178.3 million at June 30, 2024, from $162.4 million at March 31, 2024;
     
  ● Genie repurchased approximately 169,000 shares of its Class B Common stock for $2.6 million during 2Q24;
     
  ● Genie will pay a $0.075 per share quarterly dividend to Class A and Class B common stockholders on August 22, 2024, with a record date of August 14, 2024.
1 Adjusted EBITDA, Non-GAAP net income (loss) attributable to Genie Energy Ltd. common stockholders, and Non-GAAP EPS for all periods presented are non-GAAP measures intended to provide useful information that supplements the core operating results in accordance with GAAP for Genie Energy or the relevant segment. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of these non-GAAP metrics, as well as reconciliations to its most directly comparable GAAP measures.

Select Financial Metrics

(in millions except for EPS)*   2Q24     2Q23     Change  
Total Revenue   $ 90.7       $ 93.5       (3.0 ) %
Genie Retail Energy   $ 86.7       $ 89.7       (3.4 ) %
Electricity   $ 78.3       $ 80.2       (2.4 ) %
Natural Gas    $ 8.4       $ 9.0       (6.2 ) %
Others   $ 0.0       $ 0.6       (99.4 ) %
Genie Renewables    $ 4.0       $ 3.7       6.6   %
Gross Margin      36.8   %     40.9 %     (412 ) bps
Genie Retail Energy     37.2   %     41.8 %     (455 ) bps
Genie Renewables     26.8   %     19.6 %     721   bps
Income from Operations   $ 10.6       $ 15.0       (29.7 ) %
Operating Margin     11.6   %     16.1 %     (444 ) bps
Net Income from Continuing Operations   $ 9.5       $ 12.2       (21.9 ) %
(Loss) Income Attributable to Discontinued Operations, Net of Tax   $ (0.1 )     $ 3.2       (104.6 ) %
Net Income Attributable to Genie Common Stockholders   $ 9.6       $ 15.0       (35.8 ) %
Diluted Earnings Per Share   $ 0.36       $ 0.57       (0.21 ) $
Non-GAAP Net Income Attributable to Genie Common Stockholders   $ 10.1       $ 15.0       (32.7 ) %
Non-GAAP Diluted Earnings Per Share   $ 0.37       $ 0.57       (0.20 ) $
Adjusted EBITDA   $ 12.0       $ 15.8       (24.0 ) %
Cash Flow from Continuing Operating Activities   $ 17.6       $ 3.0       486.9   %
  * Numbers may not add due to rounding

Segment Highlights

Genie Retail Energy (GRE)

GRE’s second quarter revenue decreased 3.4% to $86.7 million from $89.7 million last year. Income from operations decreased 20.7% to $14.6 million from $18.4 million, and Adjusted EBITDA decreased 20.7% to $14.9 million from $18.8 million driven by a reduction in gross margins on electricity sales from the exceptionally high levels attained in the year ago quarter. Aggregate electricity units sold remained relatively consistent versus last year, as an increase in consumption per meter substantially offset a decrease in electricity meters served.

GRE Select Performance Metrics

(RCEs and Meters in thousands)*     1Q23     2Q23     3Q23       4Q23       1Q24       2Q24     2022       2023  
RCEs       352       380       375       350       348       345       262       350  
Electricity       276       304       298       272       267       266       181       272  
Natural Gas       77       76       77       78       81       78       81       78  
Meters       349       381       385       361       365       362       276       361  
Electricity       271       302       304       279       281       278       197       279  
Natural Gas       78       80       81       82       83       84       79       82  
Gross Adds       129       75       60       52       70       53       123       52  
Churn**       4.4 %     4.3 %     4.4 %     5.4 %     5.5 %     4.6 %     4.8 %     5.4 %
  * Numbers may not add due to rounding
  ** Excludes the impacts of aggregation deal expirations

Genie Renewables (GREW)

GREW’s second quarter revenue increased 6.6% to $4.0 million from $3.7 million last year, driven by 53.3% growth at Diversegy, and a $0.4 million contribution from Genie Solar’s operating portfolio.

At June 30, 2024, Genie Solar’s operating portfolio and development pipeline comprised:

Pipeline   Total   Operational   Site Control   Permitting   Construction
MW   85   10   55   10   10
Project Count   14   1   9   2   2

Balance Sheet and Cash Flow Highlights

As of June 30, 2024, Genie reported cash and cash equivalents, short and long-term restricted cash, and marketable equity securities of $178.3 million.

Total assets as of June 30, 2024 were $322.8 million. Liabilities totaled $133.2 million, and working capital (current assets less current liabilities) totaled $132.7 million. 

Cash provided by operating activities increased to $17.6 million in 2Q24 from $3.0 million in 2Q23.

Trended Financial Information*

(in millions except for EPS)**     1Q23     2Q23     3Q23       4Q23       1Q24       2Q24     2022       2023  
Total Revenue     $ 105.3     $ 93.5     $ 125.0     $ 104.9     $ 119.7     $ 90.7     $ 316.2     $ 428.7  
Genie Retail Energy     $ 101.4     $ 89.7     $ 120.3     $ 98.4     $ 112.5     $ 86.7     $ 304.6     $ 409.9  
Electricity     $ 74.5     $ 80.2     $ 114.0     $ 82.1     $ 89.4     $ 78.3     $ 241.8     $ 350.8  
Natural Gas     $ 26.9     $ 9.0     $ 5.0     $ 15.1     $ 22.4     $ 8.4     $ 62.1     $ 56.0  
Others     $ 0.0     $ 0.6     $ 1.3     $ 1.2     $ 0.7     $ 0.0     $ 0.7     $ 3.1  
Genie Renewables     $ 3.9     $ 3.7     $ 4.7     $ 6.5     $ 7.2     $ 4.0     $ 11.6     $ 18.8  
Gross Margin       31.6 %     40.9 %     32.9 %     32.1 %     28.2 %     36.8 %     49.2 %     34.1 %
Genie Retail Energy       32.1 %     41.8 %     33.9 %     33.0 %     28.6 %     37.2 %     50.4 %     35.0 %
Genie Renewables       19.3 %     19.6 %     5.3 %     17.2 %     22.0 %     26.8 %     15.6 %     15.1 %
Income (Loss) from Operations     $ 11.3     $ 15.0     $ 17.9     $ (34.2 )   $ 9.8     $ 10.6     $ 78.4     $ 10.0  
Operating Margin       10.7 %     16.1 %     14.3 %     (32.6 )%     8.2 %     11.6 %     24.8 %     2.3 %
Net Income (Loss) Attributable to Genie Common Stockholders     $ 14.3     $ 15.0     $ 14.5     $ (24.5 )   $ 8.1     $ 9.6     $ 85.9     $ 19.2  
Diluted Earnings (Loss) Per Share     $ 0.54     $ 0.57     $ 0.53     $ (0.90 )   $ 0.30     $ 0.36     $ 3.26     $ 0.74  
Adjusted EBITDA     $ 12.4     $ 15.8     $ 18.5     $ 11.4     $ 11.7     $ 12.0     $ 83.2     $ 58.2  
* Some Genie Retail Energy International (GREI) operations have been classified as a discontinued operation and their results excluded from current and historical results
** Numbers may not add due to rounding

2024 Commentary

Stein continued: “Our solid performance in the first half of 2024 puts us on track to achieve our new, consolidated Adjusted EBITDA baseline of $40 – $50 million annually, representing a meaningful increase from the $25 – $30 million range we were targeting just a few years ago. 

“In our solar portfolio, we expect to continue to build out our two New York community solar projects for the rest of the year. We have also advanced two projects, comprising 10MW of potential production, to the permitting stage and are identifying new opportunities to expand our pipeline. Also within GREW, we expect that Diversegy will report another year of strong double-digit growth.”

Earnings Announcement and Supplemental Information

At 8:30 AM Eastern this morning, Genie Energy’s management will host a conference call to discuss the Company’s financial and operational results, business outlook, and strategy. The call will begin with management’s remarks, followed by Q&A with investors.

To participate in the conference call, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international) and provide the following participant access code: 312566.

Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and providing the replay passcode: 50905. The replay will remain available through Tuesday, August 20, 2024. In addition, a recording of the call will be available for playback on the “Investors” section of the Genie Energy website.

About Genie Energy Ltd.

Genie Energy Ltd., (NYSE: GNE) is a leading retail energy and renewable energy solutions provider. The Genie Retail Energy division (GRE) supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Renewables division (GREW) is a vertically-integrated provider of community and utility-scale solar energy solutions. For more information, visit Genie.com.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contact

Brian Siegel IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
[email protected]

GENIE ENERGY LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

    June 30,
2024		     December 31,
2023		  
             
Assets             
Current assets:            
Cash and cash equivalents   $ 122,342       $ 107,609  
Restricted cash—short-term     9,178         10,442  
Marketable equity securities     344         396  
Trade accounts receivable, net of allowance for doubtful accounts of $7,349 and $6,574 at June 30, 2024 and December 31, 2023, respectively     54,228         61,909  
Inventory      5,637         14,598  
Prepaid expenses     11,743         16,222  
Other current assets     5,576         5,475  
Current assets of discontinued operations     7,080         13,182  
Total current assets     216,128         229,833  
Restricted cash—long-term     46,400         44,945  
Property and equipment, net     20,234         15,192  
Goodwill     12,658         9,998  
Other intangibles, net     2,551         2,735  
Deferred income tax assets, net     5,209         5,200  
Other assets     15,308         15,247  
Noncurrent assets of discontinued operations     4,295         7,405  
Total assets   $ 322,783       $ 330,555  
Liabilities and equity                
Current liabilities:                
Trade accounts payable     26,585         27,881  
Accrued expenses     36,288         49,389  
Income taxes payable     9,062         6,699  
Due to IDT Corporation, net     150         145  
Other current liabilities     6,505         9,280  
Current liabilities of discontinued operations     4,790         4,858  
Total current liabilities     83,380         98,252  
Noncurrent captive insurance liability     46,400         44,945  
Other liabilities     2,771         2,212  
Noncurrent liabilities of discontinued operations     678         638  
Total liabilities     133,229         146,047  
Commitments and contingencies     —         —  
Equity:                
Genie Energy Ltd. stockholders’ equity:                
Preferred stock, $0.01 par value; authorized shares – 10,000:                
Series 2012-A, designated shares – 8,750; at liquidation preference, consisting of 0 shares issued and outstanding at June 30, 2024 and December 31, 2023     —         —  
Class A common stock, $0.01 par value; authorized shares – 35,000; 1,574 shares issued and outstanding at June 30, 2024 and December 31, 2023     16         16  
Class B common stock, $0.01 par value; authorized shares – 200,000; 28,906 and 28,764 shares issued and 25,438 and 25,820 shares outstanding at June 30, 2024 and December 31, 2023, respectively     289         288  
Additional paid-in capital     158,007         156,101  
Treasury stock, at cost, consisting of 3,468 and 2,944 shares of Class B common stock at June 30, 2024 and December 31, 2023     (31,849 )       (22,661 )
Accumulated other comprehensive income     1,836         3,299  
Retained earnings     73,779         60,196  
Total Genie Energy Ltd. stockholders’ equity     202,078         197,239  
Noncontrolling interests     (12,524 )       (12,731 )
Total equity     189,554         184,508  
Total liabilities and equity   $ 322,783       $ 330,555  

GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

    Three Months Ended June 30,     Six Months Ended June 30,  
    2024       2023     2024       2023  
    (in thousands, except per share data)  
Revenues:                            
Electricity   $ 78,301       $ 80,199     $ 167,697       $ 154,686  
Natural gas     8,414         8,975       30,812         35,900  
Other     3,981         4,289       11,875         8,153  
Total revenues     90,696         93,463       210,384         198,739  
Cost of revenues     57,360         55,255       143,262         127,245  
Gross profit     33,336         38,208       67,122         71,494  
Operating expenses:                                
Selling, general and administrative (i)     22,015         23,173       44,916         45,184  
Provision for captive insurance liability     640         —       1,676         —  
Impairment of assets     118         —       118         —  
Income from operations     10,563         15,035       20,412         26,310  
Interest income     1,362         1,008       2,702         1,982  
Interest expense     (331 )       (30 )     (363 )       (49 )
Gain on marketable equity securities and investments     110         122       227         51  
Other income, net     1,262         (104 )     1,342         3,142  
Income before income taxes     12,966         16,031       24,320         31,436  
Provision for income taxes     (3,465 )       (3,865 )     (6,385 )       (7,933 )
Net income from continuing operations     9,501         12,166       17,935         23,503  
(Loss) income from discontinued operations, net of taxes     (145 )       3,173       (410 )       6,227  
Net income     9,356         15,339       17,525         29,730  
Net (loss) income attributable to noncontrolling interests, net     (256 )       183       (210 )       144  
Net income attributable to Genie Energy Ltd.     9,612         15,156       17,735         29,586  
Dividends on preferred stock     —         (176 )     —         (333 )
Net income attributable to Genie Energy Ltd. common stockholders   $ 9,612       $ 14,980     $ 17,735       $ 29,253  
                                 
Net income (loss) attributable to Genie Energy Ltd. common stockholders                                
Continuing operations   $ 9,757       $ 11,807     $ 18,145       $ 23,025  
Discontinued operations     (145 )       3,173       (411 )       6,228  
Net income attributable to Genie Energy Ltd. common stockholders   $ 9,612       $ 14,980     $ 17,734       $ 29,253  
                                 
Earnings (loss) per share attributable to Genie Energy Ltd. common stockholders:                                
Basic:                                
Continuing operations   $ 0.37       $ 0.46     $ 0.68       $ 0.90  
Discontinued operations     (0.01 )       0.12       (0.02 )       0.24  
Earnings per share attributable to Genie Energy Ltd. common stockholders   $ 0.36       $ 0.58     $ 0.66       $ 1.15  
Diluted                                
Continuing operations   $ 0.37       $ 0.45     $ 0.67       $ 0.88  
Discontinued operations     (0.01 )       0.12       (0.02 )       0.24  
Earnings per share attributable to Genie Energy Ltd. common stockholders   $ 0.36       $ 0.57     $ 0.65       $ 1.12  
                                 
Weighted-average number of shares used in calculation of earnings per share:                                
Basic     26,569         25,708       26,760         25,516  
Diluted     27,033         26,321       27,272         26,073  
                                 
Dividends declared per common share    $ 0.075       $ 0.075     $ 0.150       $ 0.150  
(i) Stock-based compensation included in selling, general and administrative expenses   $ 458       $ 756     $ 1,207       $ 1,605  

GENIE ENERGY LTD. 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 

    Six Months Ended June 30,  
    2024       2023  
    (in thousands)  
Operating activities            
Net income   $ 17,525       $ 29,730  
Net (loss) income from discontinued operations, net of tax     (410 )       6,227  
Net income from continuing operations     17,935         23,503  
Adjustments to reconcile net income to net cash provided by operating activities:                
Provision for captive insurance liability     1,676         —  
Depreciation and amortization     415         191  
Impairment of assets     118         19  
Provision for doubtful accounts receivable     1,210         1,372  
Inventory valuation allowance     417         —  
Unrealized gain on marketable equity securities and investment and others, net     (443 )       (162 )
Stock-based compensation     1,207         1,648  
Changes in assets and liabilities:                
Trade accounts receivable     6,565         (4,468 )
Inventory     6,616         (2,472 )
Prepaid expenses     4,479         (1,971 )
Other current assets and other assets     1,919         941  
Trade accounts payable, accrued expenses and other liabilities     (18,156 )       (2,430 )
Due to IDT Corporation, net     4         (21 )
Income taxes payable     2,362         (11,581 )
Net cash provided by operating activities of continuing operations     26,324         4,569  
Net cash provided by operating activities of discontinued operations     7,011         15,671  
Net cash provided by operating activities     33,335         20,240  
Investing activities                
Capital expenditures     (1,562 )       (561 )
Purchase of solar system facility     (1,344 )       —  
Purchases of marketable equity securities and other investment     (3,042 )       (9,312 )
Purchase of equity of subsidiary     (1,200 )       —  
Proceeds from the sale of marketable equity securities and other investments     —         8,009  
Proceeds from settlement of equity method investment     —         282  
Repayment of notes receivable     —         19  
Net cash used in investing activities     (7,148 )       (1,563 )
Financing activities                
Dividends paid     (4,152 )       (4,763 )
Repurchases of Class B common stock     (5,897 )       —  
Repurchases of Class B common stock from employees     (1,508 )       (1,475 )
Repurchase of Class B common stock from Genie Foundation     (768 )       —  
Proceeds from the exercise of warrants     —         5,000  
Redemption of preferred stock     —         (8,359 )
Net cash used in financing activities     (12,325 )       (9,597 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (140 )       (37 )
Net increase in cash, cash equivalents, and restricted cash     13,722         9,043  
Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at beginning of period     165,479         106,080  
Cash, cash equivalents and restricted cash (including cash held at discontinued operations) at end of the period     179,201         115,123  
Less: Cash held at of discontinued operations at end of period     1,281         465  
Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at end of period   $ 177,920       $ 114,658  

Reconciliation of Non-GAAP Financial Measures for the Second Quarter of 2024

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy disclosed Adjusted EBITDA on a consolidated basis and for GRE and disclosed Non-GAAP Net Income Attributable to Genie Energy Ltd. Common Stockholders (Non-GAAP Net Income and Non-GAAP earnings per share (Non-GAAP EPS). Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS are non-GAAP financial measures.

Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

Genie’s measure of consolidated Adjusted EBITDA starts with income from operations and adds back depreciation, amortization, and stock-based compensation and deducts impairment of assets and equity in the net loss of equity method investees, net.

Genie’s measure of Non-GAAP Net Income starts with net income attributable to Genie Energy Ltd. Common Stockholders in accordance with GAAP and adds captive insurance liability and the tax effect of this adjustment. These additions are non-cash and/or non-routine items in the relevant periods.

Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, revenue, gross profit, income from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, Genie’s measurement of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

Management believes that Genie’s measure of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS provide useful information to both management and investors by excluding certain expenses that may not be indicative of Genie’s or GRE’s core operating results. Management uses Adjusted EBITDA, non-GAAP Net Income and Non-GAAP EPS, among other measures, as relevant indicators of core operational strengths in its financial and operational decision-making.

Management also uses Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS to evaluate operating performance in relation to Genie’s competitors. Disclosure of these non-GAAP financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, Genie Energy has historically reported Adjusted EBITDA and believes it is commonly used by readers of financial information in assessing performance. Therefore, the inclusion of comparative numbers provides consistency in financial reporting at this time.

Management refers to Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS as well as the GAAP measures revenue, gross profit, and income from operations, as well as net income, on a consolidated level to facilitate internal and external comparisons to Genie’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

Although depreciation and amortization are considered operating costs under GAAP, they primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Genie’s operating results exclusive of depreciation and amortization are therefore useful indicators of its current performance.

Stock-based compensation recognized by Genie Energy and other companies may not be comparable because of the various valuation methodologies, subjective assumptions and the variety of types of awards that are permitted under GAAP. Stock-based compensation is excluded from Genie’s calculation of Adjusted EBITDA because management believes this allows investors to make more meaningful comparisons of the operating results of Genie’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for Genie Energy for the foreseeable future and an important part of employees’ compensation that impacts their performance. 

Impairment of assets is a component of income (loss) from operations that is excluded from the calculation of Adjusted EBITDA. The impairment of assets is primarily dictated by events and circumstances outside the control of management that trigger an impairment analysis. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of Genie’s continuing operations. 

Captive insurance liability is a non-cash charge incurred by Genie’s insurance operations. While there may be related charges in other periods, the magnitude of these changes can fluctuate markedly and do not reflect the performance of Genie’s continuing operations. Captive insurance losses are excluded from Genie’s calculation of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results of Genie’s core business with the results of other companies. 

Following are the reconciliations of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS on a consolidated basis to its most directly comparable GAAP measure. Adjusted EBITDA is reconciled to income from operations for Genie Energy on a consolidated basis as well as for GRE. 

Non-GAAP Reconciliation – Consolidated Adjusted EBITDA

(in millions)    1Q23     2Q23     3Q23     4Q23     1Q24     2Q24     2022     2023  
Income (loss) from Operations   $ 11.3     $ 15.0     $ 17.9     $ (34.2 )     $ 9.8     $ 10.6     $ 78.4     $ 10.0  
Add back                                                                
Captive insurance liability   $ 0.0     $ 0.0     $ 0.0     $ 45.1       $ 1.0     $ 0.6     $ 0.0     $ 45.1  
Depreciation and Amortization   $ 0.1     $ 0.1     $ 0.1     $ 0.2       $ 0.2     $ 0.2     $ 0.4     $ 0.5  
Non-Cash Compensation   $ 0.8     $ 0.8     $ 0.6     $ 0.5       $ 0.7     $ 0.5     $ 2.9     $ 2.7  
Impairment   $ 0.0     $ 0.0     $ 0.0     $ 0.0       $ 0.0     $ 0.1     $ 2.1     $ 0.0  
Equity in net loss (income) of equity method investees   $ 0.2     $ (0.1 )   $ (0.1 )   $ (0.1   )   $ (0.1 )   $ 0.0     $ 0.0     $ (0.1 )
Adjusted EBITDA   $ 12.4     $ 15.8     $ 18.5     $ 11.5       $ 11.7     $ 12.0     $ 83.8     $ 58.2  

Non-GAAP Reconciliation – GRE Adjusted EBITDA

 (in millions)   2Q24     2Q23  
Income from Operations   $ 14.6     $ 18.4  
Add back                
Depreciation and Amortization   $ 0.0     $ 0.1  
Stock-based Compensation   $ 0.3     $ 0.3  
Impairment   $ 0.0     $ 0.0  
Equity in the income of equity method investee   $ 0.0     $ 0.0  
Adjusted EBITDA   $ 14.9     $ 18.8  

Non-GAAP Reconciliation – Consolidated Non-GAAP Net Income Attributable to Genie Energy Ltd. Common Stockholders and Non-GAAP Diluted Income Per Share

(in millions except for EPS)   2Q24     2Q23  
Net income attributable to Genie Energy Ltd. Common Stockholders   $ 9.6       $ 15.0  
Add back                
Captive insurance liability   $ 0.6       $ 0.0  
Income tax effect of adjustment   $ (0.2 )       0.0  
Non-GAAP net income attributable to Genie Energy Ltd. Common Stockholders   $ 10.1       $ 15.0  
                 
Diluted earnings per share   $ 0.36       $ 0.57  
Total adjustments   $ 0.02       $ 0.00  
Non-GAAP diluted earnings per share   $ 0.37       $ 0.57  
                 
Weighted average number of shares used in the calculation of diluted earnings per share     27.0         26.1  

# # #


Bay Street News